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    heyy,

    does anyone know whether the Treasury bill rate is do with the savings or borrowing interest rate ?

    thankyou in advance
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    Isn't it what the govt pays on its borrowing?
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    if it is my economics hw makes no sense
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    The yield on Treasuries is the rate at which the market will lend to the US Gov.

    Since thats the current gold standard pretty much all interest rates are compared to it ie how much more likely are you to go bust/broke than the US Gov.

    If the rate on Treasuries is 10% you won't be getting a mortgage at 9%. Similarly with savings there is no point for savers to lend to a bank at 9% when they can get 10% from the safer Treasuries.
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    (Original post by Quady)
    The yield on Treasuries is the rate at which the market will lend to the US Gov.

    Since thats the current gold standard pretty much all interest rates are compared to it ie how much more likely are you to go bust/broke than the US Gov.

    If the rate on Treasuries is 10% you won't be getting a mortgage at 9%. Similarly with savings there is no point for savers to lend to a bank at 9% when they can get 10% from the safer Treasuries.

    thankyou for that so does the treasury bill rate then only really affect people who save money, not those who borrow ?
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    (Original post by _anum)
    thankyou for that so does the treasury bill rate then only really affect people who save money, not those who borrow ?
    No as I said, it affects all loans, where there is a saver (creditor) there is also a borrower (debtor).

    All debtors are compared to US T-bills (for now at least)
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    (Original post by Quady)
    No as I said, it affects all loans, where there is a saver (creditor) there is also a borrower (debtor).

    All debtors are compared to US T-bills (for now at least)
    ahh okayy, thankyouu
 
 
 
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